The Firm Lancaster Colony Corporation - 1108 Words

Kimber Harrison November 1, 2015 FIN Analysis Paper The Firm: Lancaster Colony Corp. Lancaster Colony Corporation specializes in making salad dressings, dips, Texas toast, croutons, and homemade rolls. Lancaster offers retail products as well as foodservice products. It’s top brands include Marzetti ®, New York Brand ®, and Sister Schubert’s ®. The company started in 1961 when several companies combined to be a manufacturer of small glass and housewares products. It wasn’t until 1969, with the purchase of T. Marzetti Company, that Lancaster entered the specialty food business. Lancaster has paid consecutive quarterly dividends since just a few years after its genesis, and part of their strategy is rewarding shareholders through annual†¦show more content†¦The majority of the specialty food market grew between 2012 and 2014, with an overall growth of 19.2 percent. The specialty food industry has been the fastest growing segment of the overall food industry. There have been shifts toward non-GMO foods that are naturally or organical ly produced. This shift is caused by an increase in health awareness, cooking at home, and an increase in environmentally conscience customers. The top cuisines include Mediterranean, Italian, Latin, and Spanish. Balance Sheet According to Lancaster Colony’s Balance Sheet, the company is doing well. Overall, it had consistent growth until it’s fourth year in 2014, where there was a slight dip. While 2015 is lower than 2014, its numbers are still fairly healthy. First, we’ll look at total cash, an important asset for any company. Lancaster’s total cash for 2015 is lower than that of 2014, but it is still higher than the five-year average. Lancaster’s total cash seems to indicate that they are growing at a good rate—not so fast that they can’t keep up, but not too slow so that they don’t have access to the cash they need. Their cash flow is consistent, which is a good sign. Lancaster Colony’s inventories are also notable. There was a sharp decrease in the third year, after which it leveled out. Next, I’ll look at Lancaster’s total current